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    Greater China
     Apr 25, 2008
Olympic paranoia causes visa hurdles
By Kent Ewing

HONG KONG - Demonstrations and fulminations we expected, but who predicted that the Beijing Summer Olympic Games would also be bad for business in China? Increasingly, however, that appears to be the case.

New visa restrictions on travel to mainland China, imposed without warning recently by the central government, have prompted a flood of protests of a different kind in Hong Kong. Pro-Tibet and human-rights activists have not yet hit the streets - they're probably waiting for the Olympic torch relay to arrive May 2 - but the American Chamber of Commerce and much of the rest of the expatriate business community are standing up for their rights. And it's hard to blame them. In the blink of an eye, doing


 

business in China has gone from being manageable to downright burdensome.

It all started when Hong Kong travel agents announced this month that, according to information they received from the commissioner's office of the Chinese Foreign Ministry in the city, visa prices had risen and no new multiple-entry visas would be issued until October. In addition, the agents reported, the easy-entry, quick-stop visa to Shenzhen, the bustling mainland city located just north of Hong Kong, has been canceled.

That bad news - which will result in considerable expense and inconvenience for frequent business travelers to the mainland - was followed by another bombshell: alarmed travel agents now say that commissioner Lu Xinhua is insisting that all visitors to the mainland must show return travel tickets and hotel vouchers in order to obtain a visa - even if they are just border-hopping to Shenzhen, a hot spot for what used to be quick-and-easy shopping expeditions.

Moreover, according to the Hong Kong Association of Travel Agents, citizens of 33 countries will no longer be able to obtain China visas in Hong Kong. Now, unless they are residents of the city, they must apply in their home countries. Among the countries affected are India, Malaysia, Indonesia, the Philippines, Turkey, South Africa and Nigeria. Applicants for business visas are also required to submit a letter of invitation.

Since these latest restrictions were announced last week, Lu's office has been flooded with complaints from business organizations and queries from reporters. The response so far has been meager and unsatisfactory. Although the office issued a statement saying that multiple-entry visas "could be issued", there has been no explanation for the changes and no attempt to address the concerns of tourists and business travelers who will be adversely affected by them.

The local media have stepped into this communication void with stories of travelers who are already lamenting the new rules, but these reports are full of conflicting information. Confusion reigns, and frustration is building.

The reason for these cumbersome, suddenly imposed restrictions can only be Beijing's now Olympic-size paranoia over security at the Games. What's not clear, however, is how the changes would make China any more secure. While they may indeed discourage legitimate business travelers, a determined terrorist masquerading as an entrepreneur could still jump through all the newly established hoops, as could any run-of-the-mill anti-China protester.

The Hong Kong government, which is also getting an earful from business representatives in the city, is caught between a rock and a hard place. Hong Kong thrives as a commercial conduit to the mainland, but its political leaders are also beholden to the Communist Party in Beijing. So far, this is the best a government spokesman could muster for the city's unsettled business class: "The government has reflected the views and concerns of the Hong Kong business community to mainland authorities."

With such tepid official support, business organizations have started their own campaign. The city's European Chamber of Commerce led the way with a letter to Lu calling for an urgent meeting to resolve the issue, and the chamber has also filed a written complaint with the Hong Kong government.

"This is already having, and will increasingly have, a very negative impact on our members and the conduct of their business in China and Hong Kong," the letter stated.

Joerg Wuttke, president of the EU chamber on the mainland, called the restrictions "truly annoying" and slammed the central government for implementing them before they were even published. "There is no transparency," he charged.

Christopher Hammerbeck, head of the British Chamber of Commerce in Hong Kong, joined the chorus of disapproval, telling Agence France Presse: "It means that business travelers into Hong Kong who find someone they want to do business with are not able to go over the border and see their factory. Long term this is going to make people think perhaps they should be looking elsewhere, maybe India or Vietnam."

The British Foreign Office has reportedly registered its concern with mainland authorities.

Hong Kong's American Chamber of Commerce is also taking an aggressive stance. Calling the restrictions a "significant step backwards", the chamber has launched a survey of its 1,600 members and sent 30 letters of complaint to Lu's office.

So the pressure is on, and the central government must respond soon. The problem boils down to this: important travel rules have been suddenly and inexplicably changed to the detriment of all concerned. Tourists and business travelers are inconvenienced and out of pocket, and the Chinese government appears bumbling and incompetent because of the abrupt and confusing manner in which the changes have been implemented. Finally, there is the unanswered avalanche of complaints to deal with. Meanwhile, do this summer's Games in Beijing look any more secure?

It would take someone with authority to revoke these arbitrary new restrictions, yet Foreign Minister Yang Jiechi has been silent. If they remain in place, China may find the list of those protesting against Beijing as host of the Olympics has expanded to include lots of people with business cards to hand out while they're demonstrating.

Kent Ewing is a teacher and writer at Hong Kong International School. He can be reached at kewing@hkis.edu.hk.

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